7 years ago
Multiple Choice Questions
44.The classification and normal balance of the accounts receivable account is:
A. an asset with a credit balance
B. a liability with a debit balance
C. an asset with a debit balance
D. a revenue with a debit balance
45.The classification and normal balance of the salaries expense account is:
A. an expense with a credit balance
B. a liability with a debit balance
C. an asset with a debit balance
D. an expense with a debit balance
46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:
A. Debit Accounts Receivable; Credit Cash
B. Debit Accounts Receivable; Credit Revenue
C. Debit Cash; Credit Accounts Receivable
D. Debit Accounts Payable; Credit Revenue
47.Select the entry below that records paying employees for work performed during the pay period?
A. debit Cash and credit Salary Expense
B. debit Salary Expense and credit Cash
C. debit Salary Expense and credit Accounts Receivable
D. debit Cash, and credit Accounts Receivable
48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:
A. Debiting Accounts Payable; Crediting Utilities Expense
B. Debiting Utilities Expense; Crediting Accounts Receivable
C. Debiting Utilities Expense; Crediting Accounts Payable
D. Debiting Utilities Expense; Crediting Cash
49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:
A. Debit Equipment $2,500; Credit Accounts Payable $2,500
B. Debit Equipment $1,500; Credit Cash $1,500
C. Debit Equipment $4,000; Credit Accounts Payable $4,000
D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500
50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:
A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000
B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000
C. Debit Cash $1,000; Credit Fee Income $1,000
D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000
51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?
A. debit Cash and credit Ty Knott, Capital
B. debit Cash and credit Salary Expense
C. debit Salary Expense and credit Cash
D. debit Ty Knott, Drawing, and credit Cash
52.The ending capital balance appears on which of the following statement(s)?
A. Statement of owner's equity
B. Income Statement
C. Statement of owner's equity and balance sheet
D. Statement of owner's equity and income statement
53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be
A. $30,000.
B. $35,000.
C. $47,000.
D. $25,000.
Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.
